Required:

1. What are the direct material variances?
2. What are the direct labor variances?
3. What are the variable overhead variances?

Landor Company uses a standard cost system and sets predetermined overhead rates based on direct labor-hours. The following data are taken from the company's budget for the current year: Denominator activity (direct labor-hours) Variable manufacturing overhead cost Fixed manufacturing overhead cost .. 5,000 $25,000 $59,000 The standard cost card for the company's only product is given below: Direct materials, 3 yards at $4.40 per yard Direct labor, 1 hour at $12 per hour Manufacturing overhead, 140% of direct labor cost. Standard cost per unit... $13.20 12.00 16.80 $42.00 During the year, the company produced 6,000 units of product and incurred the following costs: Materials purchased, 24,000 yards at $4.80 per yard ..... Materials used in production (in yards) Direct labor cost incurred, 5,800 hours at $13 per hour Variable manufacturing overhead cost incurred Fixed manufacturing overhead cost incurred. $115,200 18,500 $75,400 $29,580 $60,400